Bismite Corporation Purchases Trees from Cheney Lumber and Processes Them

question 125

Multiple Choice

Bismite Corporation purchases trees from Cheney lumber and processes them up to the split-off point where two products (paper and pencil casings) emerge from the process. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of October:

The cost of purchasing 330 trees and processing them up to the split-off point to yield 190,000 sheets of paper and 190,000 pencil casings is $15,500.
Bismite's accounting department reported no beginning inventory.
If the sales value at split-off method is used, what is the approximate production cost for each pencil
Casing? (Round intermediary percentages to the nearest hundredth.)

• A) $0.035
• B) $0.049
• C) $0.034
• D) $0.048

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Definitions:

Basement Membrane

A slender layer of fibrous extracellular matrix tissue that acts as a barrier between an internal or external body surface and the adjacent connective tissue.

Juxtamedullary Nephron

A type of nephron in the kidney with a long loop of Henle, extending deep into the renal medulla, involved in the concentration of urine.

Glomerulus

A network of capillaries enclosed in the Bowman's capsule in the kidney, playing a crucial role in the filtration of blood to form urine.

Renal Column

Extensions of cortical tissue that project into the medulla of the kidney, separating the renal pyramids.